1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
morpeh [17]
3 years ago
7

3. A worker within the middle income class is preparing to retire. In the year before he retired, his gross monthly earnings are

$2,000. His Social Security benefits will be $1,200 per month. Before he retired, his income was subject to a tax of 25 percent. Find his before-tax and after-tax replacement rates
Business
1 answer:
snow_tiger [21]3 years ago
7 0

Answer:

The replacement rate is the percentage of the final income that the pension compensates.

Before-tax replacement rate:

The worker made $2,000, and his social security benefits are $1,200.

1,200 x 100% / 2,000 = 60%

The before-tax replacement rate is 60%.

After-tax replacement rate:

His 2,000 income was subject to a 25% tax.

2,000 x 25% = 500

His after-tax income was 1,500

1,200 x 100% / 1,500 = 80%

The after-tax replacement rate is 80%.

You might be interested in
Which one of the following represents the minimum rate of return a firm must earn on its assets if it is to maintain the current
FinnZ [79.3K]

Answer:

B. Weighted average cost of capital

Explanation:

The Weighted average cost of capital is abbreviated as the WACC. It is the weighted average of cost of common equity, cost of preferred equity and aftertax cost of debt. For a company to have a breakeven in returns, they need to earn a minimum rate of return on its assets which is equivalent to the weighted average cost of capital(WACC) making choice B correct.

5 0
3 years ago
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rat
xz_007 [3.2K]

Answer: The correct answer is "a. the dollar will depreciate and the peso will appreciate.".

Explanation:  If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that the dollar will depreciate and the peso will appreciate.

As inflation in the United States is higher, the dollar is affected by a loss of purchasing power, therefore it depreciates with respect to the Mexican peso.

5 0
3 years ago
Nordstrom sells designer suits made in italy in its stores in the united states. nordstrom is ____ suits. a. importing b. taxing
erica [24]

Importing

What is Importing?
An import is an item or service that is purchased outside of its nation of origin. International trade is made up of imports and exports. A country has a negative trade balance, or a trade deficit, if the value of its imports exceeds the value of its exports. Since 1975, the US has had a trade imbalance. The U.S. Census Bureau estimates that in 2019, the deficit was $576.86 billion.

To learn more about Importing
brainly.com/question/24473707
#SPJ4

8 0
1 year ago
Virgil wants to emphasize the sheet tabs in his workbook. which command should he choose?
Advocard [28]
Tab Color.........................
4 0
3 years ago
There’s 15 questions and this is 5.
son4ous [18]
I believe the answer is preparing a list of vegetables to purchase. That’s the only option that makes sense with his job.
4 0
3 years ago
Other questions:
  • Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported
    11·1 answer
  • Parrett Corp. acquired one hundred percent of Jones Inc. on January 1, 2018, at a price in excess of the subsidiary's fair value
    9·1 answer
  • Wizards are step-by-step guides for tasks in application software
    13·1 answer
  • What refers to the quantity of goods and services that consumers are willing to buy at a given price? refers to the quantity of
    13·2 answers
  • You are working in a fast moving industry. to be able to provide good advice to your clients, you need to stay up-to-date. howev
    12·1 answer
  • All else equal, when oil prices increase, some uneconomical sources of oil tend to become more economical, and this will _______
    11·1 answer
  • Davison Company determined that the book basis of its net accounts receivable was less than thetax basis of its net accounts rec
    10·1 answer
  • The 20% off sale is a better deal than the $200 rebate or
    6·2 answers
  • Katrina needs to use her communication and conflict management skills every day with her team. What stage of development is her
    7·1 answer
  • Amerigo grew up speaking both English and Italian with his family, and he believes that knowledge of more than one language is a
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!